The recession has put travel budgets under pressure at most companies and easyJet said that it had benefited from passengers trading down from traditional, full-service carriers.

Its strong performance in this market was reflected in its results for the year: Revenues rose 13 per cent to £2.67 billion and passenger numbers were 3.4 per cent up at £45.2 million. Profits fell 65 per cent to £43.7 million largely thanks to an £86 million increase in its fuel bill.

EasyJet also warned of a “tough winter” as rising unemployment hits demand for travel. It has sold about 45 per cent of its winter schedule, but yield — the amount of money it makes from each seat — has fallen as it cuts prices to fill flights.